Exclusive-Ripple to buy stablecoin platform Rail for $200 million
(Reuters) -Ripple will buy stablecoin payments platform Rail for $200 million, the company said on Thursday, weeks after U.S. President Donald Trump signed a law that raised expectations cryptocurrency tokens are about to enter the mainstream.
Ripple, a crypto company that issues the token XRP as well as its own stablecoin called RLUSD, has invested heavily in stablecoin infrastructure in recent months.
The acquisition - which will close in the fourth quarter of this year pending regulatory approvals - will enable Ripple and Rail to "deliver the most comprehensive stablecoin payments solution available in the market," it said.
"As regulations become more clear and the space has grown and matured, this opportunity for stablecoin payments is really ripe, and the acquisition of Rail just really solidifies our market leadership in stablecoin payments," said Monica Long, president of Ripple in an interview.
Toronto-based Rail, backed by Galaxy Ventures and Accomplice, uses stablecoins to deploy cross-border payments. It says its transactions are cheaper and can clear in just hours, compared to longer settlement times for fiat payments.
Rail says on its website that the company is responsible for 10% of all global stablecoin-based payment activity.
Trump in July signed a bill into law to create a federal regulatory regime for stablecoins, which analysts said could allow digital assets to become an everyday way to make payments and move money.
Stablecoins are designed to maintain a constant value, usually a 1:1 U.S. dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens.
Ripple said in April that it would also buy multi-asset prime broker Hidden Road in a $1.25 billion deal, one of its largest acquisitions yet, which it said would enhance RLUSD's utility.
Ripple launched RLUSD, a stablecoin pegged to the U.S. dollar, last year, as it sought to disrupt the market dominated by Tether and Circle's USDC.
(Reporting by Hannah Lang in New York; editing by Barbara Lewis)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
20 minutes ago
- The Star
SoftBank shares surge to record after optimism for AI prospects boosted Q1 earnings
TOKYO (Reuters) -Shares in SoftBank Group jumped more than 13% to a record high on Friday morning in a show of investor support for the Japanese technology investor's AI push after first quarter profit beat expectations. SoftBank's share price hit 14,205 yen at the close of morning trading. SoftBank has announced a series of mammoth investments this year, including committing $30 billion to ChatGPT maker OpenAI, as well as leading the financing for Stargate - a $500 billion data centre project in the United States. The firm beat analysts' expectations to report a net profit of 421.8 billion yen ($2.87 billion) for the April-June quarter, compared to a loss in the same period a year ago. Market enthusiasm for AI-related companies also pushed up valuations for its portfolio of listed and unlisted technology companies such that SoftBank's loan to value ratio improved to 17% at the end of June compared to 18% at the end of March. The results were "evidence of SoftBank's quality diversified portfolio, strong underlying fundamentals, thematic/secular tailwinds for its equity holdings, and the resilience of its balance sheet," Macquarie analyst Paul Golding wrote in a note. SoftBank was the biggest contributor to gains for Japan's Topix index, which rose some 1.5% to trade above the 3,000 point mark for the first time in its history. The jump will provide some relief to SoftBank investors as its shares have traded at a more than 50% discount to the value of its assets over the past five quarters. "Active investors scooped up SoftBank Group shares to beat the Topix's gain," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute. "When the main indexes rise, they need to buy heavyweights that are rising. SoftBank's strong earnings and the Topix's gains came at the same time." (Reporting by Anton Bridge and Junko Fujita; Editing by Kate Mayberry)
New Straits Times
20 minutes ago
- New Straits Times
Gold futures hit record high after US tariff report
NEW YORK: Gold futures jumped to a fresh high on Friday following a report that the United States has imposed tariffs on imports of one-kilo gold bars, while spot gold was headed for a second straight weekly rise on tariff turmoil and US interest rate-cut hopes. Spot gold was down 0.2 per cent at US$3,389.37 per ounce, as of 0104 GMT, after hitting its highest since July 23 earlier in the session. Bullion is up 0.8 per cent so far this week. US gold futures for December delivery were up 1.6 per cent at US$3,509.10, after hitting an all-time high of US$3,534.10. The United States has imposed tariffs on imports of one-kilo gold bars, the Financial Times reported on Thursday, citing a letter from Customs Border Protection. The letter, dated July 31, said one-kilo and 100-ounce gold bars should be classified under a customs code subject to levels, according to the newspaper, which added that the move could impact Switzerland, the world's largest refining hub. US President Donald Trump's higher tariffs on imports from dozens of countries kicked in on Thursday, leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal. Gold is often used as a safe store of value during times of political and financial uncertainty. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.66 per cent to 959.09 metric tons on Thursday from 952.79 tons on Wednesday. Last week, weaker US payrolls data boosted rate-cut bets, with the market now pricing in an over 91 per cent chance of a 25-basis-point reduction next month, as per CME Group's FedWatch Tool. Risks to the job market have increased, but it remains too soon to commit to rate cuts before the next meeting of the Federal Reserve, with key data still to come and inflation still expected to rise in coming months, Atlanta Fed President Raphael Bostic said.
New Straits Times
20 minutes ago
- New Straits Times
MARKET PULSE AM AUG 8, 2025 [WATCH]
KUALA LUMPUR: News on the latest moves on the stock and crypto markets. Bursa Malaysia opened nearly flat after a mixed overnight performance on Wall Street, as investors turned cautious over the impact of US President Donald Trump's tariffs. Analyst expects the local bourse to take a breather after a three-day winning streak ahead of the weekend. The index is likely to move within the range of 1,545 to 1,555. In cryptocurrencies, Bitcoin rose to RM491,989. Ethereum also climbed to RM16,375, while Solana inched up to RM731. That's it for Market Pulse.
